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Updated over 1 year ago, 06/27/2023

User Stats

7
Posts
4
Votes
Renee Ward
Pro Member
  • Investor
  • Bismarck, ND
4
Votes |
7
Posts

Unexpected appraisal results

Renee Ward
Pro Member
  • Investor
  • Bismarck, ND
Posted
Hello, 1st time posting, though I've been living and breathing allthings Bigger Pockets for the past 6 months.  

My husband and I are new REI, just closed on a 4 plex found off market using seller financing in March, '23.   

We will be  closing on our 2nd purchase this week, also found off market but we will be using conventional financing so an appraisal was required.  It is a single family home with a triplex on the same property sold as a package.  However the appraisal came back only $5000 more than a previous one completed in 2014, on a beautifully kept property.  Market here has been steady, and held stable when the market fell in previous downturns.  

Am I placing too much importance on the appraisal?  It's higher than the purchase price so the bank will have no trouble with it.  I questioned the results and was told investment properties don't gain value like other real estate and that there were no recent comps - they were older than 6 months.  It was an expensive appraisal, costing $2500 so I don't want to repeat it. 

The #s still work, especially since we plan to pass on the the utilites to the renters and will turn one efficiency into a medium term rental in a downtown area near hospitals.  

Any feedback is appreciated.  
  • Renee Ward
  • Loading replies...